Trafigura Engages China’s ITG in Talks to Launch $2 Billion Credit Fund

Trafigura Group has initiated formal negotiations with China’s Industrial Trust Group (ITG) to establish a credit fund with an initial commitment of $2 billion. The fund, designed to support energy transition and infrastructure development, will focus on high-growth markets in sub-Saharan Africa and Southeast Asia. This collaboration marks a pivotal step in Trafigura’s broader strategy to deepen financial integration with Asian institutional partners. The proposed fund will deploy capital through direct lending, mezzanine financing, and special-purpose vehicle structures, targeting projects such as renewable power plants, port expansions, and sustainable mining operations. Trafigura’s existing asset base and logistics network in emerging markets are expected to provide strong due diligence and operational oversight, while ITG will bring regulatory expertise and access to Chinese institutional investors. A key milestone in the talks includes the development of a risk-sharing framework under which both parties will allocate capital proportionally, with Trafigura contributing 60% and ITG 40%. The fund is expected to begin disbursements by Q3 2026, with a target portfolio of 12 to 15 projects over its first three years. Initial investments are projected to yield an internal rate of return (IRR) between 8% and 10%, according to preliminary financial modeling. The initiative could reshape capital flows into emerging infrastructure markets, particularly in regions where traditional bank financing remains limited. Financial institutions, commodity traders, and project developers across Africa and ASEAN are expected to benefit from increased liquidity. The collaboration also reflects a broader trend of global commodity firms leveraging financial partnerships to diversify revenue and reduce exposure to volatile spot markets.